Technical analysis is based on 3 main assumptions, otherwise known as principles; the market discounts everything, price moves in trends, and history repeats itself. Technical analysis involves the study of demand and supply to determine the trend that will continue in the future. With this kind of analysis, you study the market itself to understand its emotions. Since its launch in 2004, The Technical Analyst has brought technical analysis research and commentary to the institutional financial […]

Financial spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.2% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how […]

The above chart shows three points at which traders could have gotten into reversal trades on the EUR/USD 4-hr timeframe chart. The three trades qualify as reversal trades because they are short trade opportunities that appeared at the top of a bullish trend. One of the easiest ways to identify a reversal trade is to look for rejection wicks, which usually occur when traders are fighting to control an instrument’s price. For example, the rejection wicks that formed in the above charts sho […]

If prices change, EMAs generally react more quickly than other moving averages. That’s one of the reasons why it’s used to create other indicators, like the Moving Average Convergence Divergence . Some short-term traders use 12- and 26-day EMAs, while long-term traders prefer to use 50- and 200-day EMAs. The second type of MA is an exponential moving average, which gives more importance to recent prices to make the data more responsive to new information. Largely the timeframes that […]